A Random Sample of 100 Students at a High School $\mathrm { p } _ { 1 } - \mathrm { p } _ { 2 }$

question 30

Multiple Choice

A random sample of 100 students at a high school was asked whether they would ask their father or mother for help with a financial problem. A second sample of 100 different students was asked the same question regarding a dating problem. Forty-three students in the first sample and 47 students in the second sample replied that they turned to their mother rather than their father for help. Construct a 98 % confidence interval for $\mathrm { p } _ { 1 } - \mathrm { p } _ { 2 }$

• A) (-0.204,0.124)
• B) (-1.324,1.521)
• C) (-0.591,0.762)
• D) (-1.113,1.311)

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Definitions:

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Annual Return

The annual return is the percentage change in an investment's value over a year, accounting for dividends, interest, and capital gains.

Present Value Factors

Multipliers used to determine the present value of a future sum of money or stream of cash flows given a specific discount rate.

Hurdle Rate

The minimum return rate on an investment required by an investor or manager, often used in capital budgeting.